Amid San Francisco's Slump, Glut
Of Office Space Drives Down Rents

SAN FRANCISCO -- Buffeted by the tech downturn and other business contraction, the office market here posted a record-high vacancy rate in the first quarter, pushing rents further downward.

For the first time, San Francisco's office-vacancy rate hit 21%, according to a report to be released this week by Grubb & Ellis Co., a New York real-estate services firm. The latest vacancy rate compares with 19% the previous quarter and is a big jump from the 8% vacancy rate of a year ago. Before the recent surge, the high was 17%...